Ron Paul: Bitcoin could be ‘the destroyer of the dollar’

Former Texas Republican Congressman and three-time presidential candidate Ron Paul has commented on bitcoin. Although Dr. Paul did not criticize or show support for the cryptocurrency, he stated that bitcoins could very well be “the destroyer of the dollar.”

“There will be alternatives to the dollar, and this might be one of them,” said Paul, according to CNN. He added that more people begin to utilize bitcoins as a method of exchange then “it’ll go down in history as the destroyer of the dollar.”

Akin to what a lot of libertarians have been saying as of late about the future of bitcoin and alternative currencies, Paul stated that governments and central banks want to maintain full control and “demand a monopoly” of money and credit. This is why “they’re not going to give it up easily. They will come down hard.”

For years, Paul has been arguing for the Austrian case of competing currencies, whether it’s precious metals or digital currencies. Despite the criticism that bitcoin has gotten by those who question its speculative bubble, a (true) free market would permit the bitcoin to become a currency and allow the consumer to decide if they want to use bitcoins or litecoins, gold bars or silver coins.

The bestselling author of “End the Fed” and “Liberty Defined” came out at a good time to utter a warning that the federal government or the Federal Reserve could intervene in the market by regulations and legislation, though exiting Fed Chairman Ben Bernanke has noted that the central cannot regulate alternative currencies and payment systems.

Also, here is what Paul had to say in 2008 on the floor of Congress about competing currencies:

“Just as we have gone from a constitutionally instituted national defense consisting of a limited army and navy bolstered by militias and letters of marque and reprisal, we have moved from a system of competing currencies to a government-instituted banking cartel that monopolizes the issuance of currency.”

“In the absence of legal tender laws, Gresham’s Law no longer holds. If people are free to reject debased currency, and instead demand sound money, sound money will gradually return to use in society. Merchants would have been free to reject the king’s coin and accept only coins containing full metal weight.”

“The prospect of American citizens turning away from the dollar towards alternate currencies will provide the necessary impetus to the US government to regain control of the dollar and halt its downward spiral. Restoring soundness to the dollar will remove the government’s ability and incentive to inflate the currency, and keep us from launching unconstitutional wars that burden our economy to excess. With a sound currency, everyone is better off, not just those who control the monetary system. I urge my colleagues to consider the redevelopment of a system of competing currencies.”

Bitcoin is trading at just under $1,150 (at the time of this writing).

Like this article? Get ECN delivered to your inbox daily. Subscribe here.

Leave a Comment